Correlation Between HAGA SA and Mangels Industrial
Can any of the company-specific risk be diversified away by investing in both HAGA SA and Mangels Industrial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HAGA SA and Mangels Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAGA SA Indstria and Mangels Industrial SA, you can compare the effects of market volatilities on HAGA SA and Mangels Industrial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HAGA SA with a short position of Mangels Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and Mangels Industrial.
Diversification Opportunities for HAGA SA and Mangels Industrial
-0.96 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HAGA and Mangels is -0.96. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Mangels Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangels Industrial and HAGA SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HAGA SA Indstria are associated (or correlated) with Mangels Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangels Industrial has no effect on the direction of HAGA SA i.e., HAGA SA and Mangels Industrial go up and down completely randomly.
Pair Corralation between HAGA SA and Mangels Industrial
Assuming the 90 days trading horizon HAGA SA Indstria is expected to generate 0.43 times more return on investment than Mangels Industrial. However, HAGA SA Indstria is 2.35 times less risky than Mangels Industrial. It trades about 0.01 of its potential returns per unit of risk. Mangels Industrial SA is currently generating about -0.15 per unit of risk. If you would invest 130.00 in HAGA SA Indstria on August 24, 2024 and sell it today you would earn a total of 0.00 from holding HAGA SA Indstria or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAGA SA Indstria vs. Mangels Industrial SA
Performance |
| Timeline |
| HAGA SA Indstria |
| Mangels Industrial |
HAGA SA and Mangels Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and Mangels Industrial
The main advantage of trading using opposite HAGA SA and Mangels Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA position performs unexpectedly, Mangels Industrial can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mangels Industrial will offset losses from the drop in Mangels Industrial's long position.| HAGA SA vs. METISA Metalrgica Timboense | HAGA SA vs. Wetzel SA | HAGA SA vs. Recrusul SA | HAGA SA vs. Randon SA Implementos |
| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. HAGA SA Indstria | Mangels Industrial vs. Refinaria de Petrleos |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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